Let us first calculate what will be the return of FD in Bank. Now we all know that the average standard interest rate on FD of any bank is about 7%. Thus if we invest about Rs 80,000.00, it will be doubled in 10 years, i.e. after 10 years, the value of FD will be 1,60000.00 and from 11 year onwards till 50th year you will receive about Rs. 11,200.00 per year as interest from this FD.
Now let us assume that you have invested same amount i.e. in a standard Plot of Wadikond. This will be enough to purchase about 1 Are (10 x 10 meters = 100 sq. meters) horticultural land with ready planted mango plant and which will be maintained by professionals of Wadikond. Thus it can be treated as Bank FD. Now for maintenance let us assume that Wadikond management charges you Rs. 5000.00 for next 10 years. (For details refer the blog titled as Unique Benefits at Wadikond). Thus once again your investment will be about Rs. 75000.00 in the first ten years.
Now as per the information published by Dapoli Krishi Vidyapeeth, and also as per the experiences of ours and many locals, on 10th year onwards, the Alphanso Mango tree, yields about 200 fruits per tree, every year. Rather and to be precise, about 400 fruits per tree on alternate year. Now as you know the average price of good Alphanso Mango from Ratnagiri, is about Rs. 30.00 per No. Thus for 200 mangoes we will have to spend Rs. 6000.00 based on current price.
Now here lies the main hitch. As a result of inflation, the price of mango will also be doubled in 10 years. Thus if you will seel these mangoes on 11th year, they will automatically fetch the double price and your income from that single mango tree will be Rs. 12000.00, in the 11th year.
One has to note here that, as Wadikond professionals are taking every responsibility of maintenance and selling, there is no headache or any responsibility on you. Thus your investment is as good as Bank FD and on 11th year itself you will be getting THR ROI, more than that of the bank.
But main surprises are yet to come. Now think of the period from 21st year upto 30th year. For this period, investment in Bank FD will generate ROI of Rs. 11,200.00 for you on the invested amount. Now let us see what will happen with the investment in horticultural land. Now, in 21st year, as per the law of inflation the price of Alphanso mango will be Rs. 120 per mango, i.e. double than that of in the 11th year. Thus you will generate the ROI of 24000.00 i.e. more than twice as that of Bank FD.
Now let us go further. In the similar way, from year 31st to 40th, Bank ROI will be the same i.e. Rs 11,200.00 on the investment. But with the same calculation, the ROI of Horticultural investment will be 240 x200 = Rs. 48000.00 i.e. almost 4 times than that of Bank FD.
Similarly we can very well see that ROI from 41st year up to 50th year will be 8 times than that of ROI from Bank FD.
As we are assuming, that the life of mango tree is of 50 years, (In actual case, it may be up to 100 years also). We will stop here only.
The only care one has to take that replace the old plants, (By way of grafting new plant on old stems – for details you have to visit Wadikond and observe personally) , one by one, from the period of 40th up to 70th year, of the total area.
This will again start the cycle, but at this time, it will start from 8 times more ROI and will rise upto more than 2000 times than that of Bank FD, till 51st to 100th year.
Thus the investment in Bank FD and investment in Horticultural plantation cannot be compared. The investment in horticultural land or in horticulture is far far better than that of FD.
Now, immediately the question will be raised in your mind that how comes then the farmers are poor, and most of them are below poverty line. Let us try to see this in the next blog.
Till then see you, by-by ……